Activision 2009 Annual Report Download - page 61

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49
For the year ended December 31, 2010, the restructuring costs charged to expense of $3 million is reflected in the
general and administrative expense in the consolidated statement of operations.
The total restructuring reserve balances and the net restructuring charges are presented below by operating segment
(amounts in millions):
Restructuring Reserve
Balance Restructuring Charges
At
December 31,
2010
At
December 31,
2009
Year Ended
December 31,
2010
Year Ended
December 31,
2009
Year Ended
December 31,
2008
Activision ......................... $2 $9 $3 $2 $2
Distribution....................... — — — 3 —
Total operating segments .. 2 9 3 5 2
Other* ............................... — — — 18 91
Total ................................. $2 $9 $3 $23 $93
* Represents Non-Core activities, which are legacy Vivendi Games’ divisions or business units that we
have exited, divested or wound down as part of our restructuring and integration efforts as a result of
the Business Combination. Prior to July 1, 2009, Non-Core activities were managed as a stand-alone
operating segment; however, in light of the minimal activities and insignificance of Non-Core activities,
as of that date we ceased their management as a separate operating segment and, consequently, we are
no longer providing separate operating segment disclosure and have reclassified our prior periods’
presentation so that it conforms to the current period’s presentation.
On February 3, 2011, the Board of Directors of the Company approved a restructuring plan involving a focus on the
development and publication of a reduced slate of titles on a going-forward basis, including the discontinuation of the
development of all music-based games and the closure of the related business unit and the cancellation of other titles then in
production, and a related reduction in studio headcount and corporate overhead. See Note 25 of the notes to the consolidated
financial statements for further information.
9. Inventories
Our inventories consist of the following (amounts in millions):
At
December 31,
2010 2009
Finished goods ..................................................................................................... $82 $201
Purchased parts and components ......................................................................... 30 40
Inventories ........................................................................................................... $112 $241
10. Property and Equipment, Net
Property and equipment, net was comprised of the following (amounts in millions):
At December 31,
2010 2009
Land ............................................................................................................. $1 $1
Buildings ..................................................................................................... 5 6
Leasehold improvements ............................................................................. 57 54
Computer equipment ................................................................................... 386 311
Office furniture and other equipment .......................................................... 63 65
Total cost of property and equipment ...................................................... 512 437
Less accumulated depreciation .................................................................... (343) (299)
Property and equipment, net .................................................................... $169 $138